Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2013

Total basic management fees incurred by the Company during the three months ended March 31, 2013 and 2012 were included in the Company’s statements of operations and comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31, 2013		Three Months Ended March 31, 2012
	(unaudited)		(unaudited)
Continuing operations — property general and administrative expense, and corporate overhead expense	$	5,355	$	4,895
Discontinued operations	65		566
	$	5,420	$	5,461

Schedule of incentive management fees

Total incentive management fees incurred by the Company during the three months ended March 31, 2013 and 2012 were included in the Company’s statements of operations and comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31, 2013		Three Months Ended March 31, 2012
	(unaudited)		(unaudited)
Continuing operations — property general and administrative expense	$	804	$	676
Discontinued operations	—		157
	$	804	$	833

Schedule of license and franchise costs

Total license and franchise costs incurred by the Company during the three months ended March 31, 2013 and 2012 were included in the Company’s statements of operations and comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31, 2013		Three Months Ended March 31, 2012
	(unaudited)		(unaudited)
Continuing operations — franchise costs	$	6,478	$	5,971
Discontinued operations	73		760
	$	6,551	$	6,731

Schedule of assets under capital lease

Assets under capital lease were included in investment in hotel properties, net on the Company’s consolidated balance sheets as follows (in thousands):

	March 31, 2013			December 31, 2012
	(unaudited)
Buildings and improvements	$	58,799		$	58,799
Furniture, fixtures and equipment	104			104
	58,903			58,903
Accumulated depreciation	(1,242		)	(871		)
	$	57,661		$	58,032

Schedule of future minimum lease payments under capital leases

Future minimum lease payments under capital leases together with the present value of the net minimum lease payments as of March 31, 2013 are as follows (in thousands):

2013	$	1,437
2014	1,440
2015	1,403
2016	1,403
2017	1,403
Thereafter	111,868
Total minimum lease payments (1)	118,954
Less: Amount representing interest (2)	(103,304		)
Present value of net minimum lease payments (3)	$	15,650

(1) Minimum lease payments do not include percentage rent which may be paid under the Hyatt Chicago Magnificent Mile building lease on the basis of 4.0% of the hotel’s gross room revenues over a certain threshold. No percentage rent was due for the three months ended March 31, 2013.

(2) Interest includes the amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at lease inception.

(3) The present value of net minimum lease payments are presented on the Company’s consolidated balance sheets as current obligations of $35,000 and as long term obligations of $15.6 million as of both March 31, 2013 and December 31, 2012. The current obligations are included in accounts payable and accrued expenses, and the long-term obligations are included in capital lease obligations, less current portion.

Schedule of ground lease rent

Total rent expense incurred pursuant to ground, building and air lease agreements for the three months ended March 31, 2013 and 2012 was included in the Company’s consolidated statements of operations and comprehensive income (loss) as follows (in thousands):

	Three Months Ended March 31, 2013		Three Months Ended March 31, 2012
	(unaudited)		(unaudited)
Continuing operations — property tax, ground lease and insurance	$	4,231	$	4,164
Discontinued operations	—		7
	$	4,231	$	4,171

Schedule of hotel geographic concentration of risk

	California		New York		Illinois
	(unaudited)		(unaudited)		(unaudited)
Number of hotels	8		3		3
Percentage of total rooms	31	%	11	%	10	%
Percentage of total revenue for the three months ended March 31, 2013	32	%	12	%	5	%

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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